$128 Million a Day: Iraq’s Oil Losses Amid Middle East Tensions

Iraq is facing mounting financial losses after the suspension of production at the Rumaila oil field and fields in the Kurdistan Region, amid escalating tensions in the Middle East.

According to the Eco Iraq Observatory, the country is losing an estimated $128 million per day based on an oil price of $80 per barrel.

Rumaila, one of Iraq’s largest oil fields, produces about 1.4 million barrels per day, while output capacity in the Kurdistan Region stands at roughly 200,000 barrels per day. The total halted production amounts to approximately 1.6 million barrels daily, the Observatory estimates.

If the suspension continues, the economic impact could deepen. A one-week halt may cost nearly $900 million, while a full month of disruption could push losses beyond $3.8 billion, according to the same estimates.

Economists warn that further shutdowns at major fields could compound the strain on Iraq’s state finances, particularly if export disruptions persist.

With oil serving as the backbone of Iraq’s economy, prolonged disruption could intensify fiscal pressures in the weeks ahead.